PyroGenesis Canada Inc. has announced that plans to spin-off 80% of its Additive Manufacturing business into an independent publicly-traded company have been approved by its Board of Directors. Following the successful spin-off, the new company will have all rights to produce metal and alloy powders for the AM industry using PyroGenesis’ plasma atomisation process and to distribute powder production systems and equipment under an exclusive world-wide license with PyroGenesis.
PyroGenesis will continue to benefit from supplying systems and equipment to the new company with traditional margins, whilst also providing standard maintenance and technical support services for each system purchased for up to $750K per system per year. The transaction is expected to be staged over the next four months, at which time PyroGenesis’ shareholders will own and control all the issued and outstanding shares of both companies, either directly or indirectly through their holdings in PyroGenesis.
“Spinning off [the new company] will help attract an investor base best suited to the company’s unique value proposition, particular business operations and financial characteristics, thereby maximizing shareholder value and placing it in a better position to ramp up, generate revenues, and develop strategic relationships/partners than had it remained part of PyroGenesis” stated P. Peter Pascali, President and CEO of PyroGenesis.
The new company is expected to be in commercial production of metal powders as early as Q3 2016, with a second system coming online in Q1 2017. “Our plasma atomisation system produces powders of the highest purity, while being extremely spherical, and having a very narrow particle size distribution, making it ideally suited for the powder requirements of the growing 3D printing industry,” stated Pierre Carabin, Director of Engineering of PyroGenesis.